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Theory and Practice for Natural Gas Pricing in Russia

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  • D. Gordeev
  • G. Idrisov
  • E. Karpel

Abstract

In this paper the authors analyze needs of changes of pricing mechanisms for natural gas for domestic and foreign markets. They conclude that in medium term these changes are inevitable due to the Russian practice obsolescence in the quickly transforming gas markets. Inefficient natural gas use due to distorted price incentives, lack of competition in the domestic market, as well as linking the domestic price to the price of European oil product baskets are significant deterrents to the development of the natural gas sector. Different scenarios for the Russian gas sector and potential influence on macroeconomics are described.

Suggested Citation

  • D. Gordeev & G. Idrisov & E. Karpel, 2015. "Theory and Practice for Natural Gas Pricing in Russia," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 1.
    • Handle: RePEc:nos:voprec:y:2015:id:44
    DOI: 10.32609/0042-8736-2015-1-80-102
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